A big takeover could be in the offing for the European plastic pipe market. Aliaxis (Brussels, Belgium; www.aliaxis.com) has submitted a non-binding takeover bid for smaller competitor Uponor (Vantaa, Finland; www.uponor.com). Aliaxis is offering EUR 25 per Uponor share, which values the Finnish company at EUR 1.82 bn. Uponor generated sales of EUR 1.39 bn last year with around 4,000 employees in Europe and North America.

The bid was 44.6% higher than Uponor’s closing share price on 14 April 2023, the last day before the announcement. Uponor stock then jumped sharply to just below the bid price on 17 April. However, whether the offer comes to fruition depends on factors such as whether Aliaxis can secure access to at least 60% of Uponor’s shares, due diligence, supervisory board approval at both companies, and the OK from antitrust authorities.

Related: Uponor’s pipe assembly plant in Germany to shut / Production to be shifted to Poland

If everything goes as Aliaxis CEO Eric Olsen envisages, a binding takeover bid could be made in the third or fourth quarter. A merger, according to Aliaxis, would create a global leader in water management solutions that could weather the current weakness in demand in the residential construction markets in Europe and the US. The resulting company would have over 19,000 employees and pro-forma revenues of EUR 5.7 bn without taking into account possible savings from synergies.